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Revolutionising Pharma: Unveiling the Role of Digital Health in Biopharma Giants

While the rewards for successfully developing a new therapy can be measured in billions, the R&D costs and the risk are also sky-high. It’s hardly surprising, then, that efficiency is one of the key targets for many of the digital health and AI tools in the pharma sphere. It also, therefore, makes sense that it’s an area in which many of the established biopharma players are taking an interest.

This is the topic that we have honed in on for Galen Growth’s latest edition of the annual Pharmaceutical Innovation Index report, which indexes the most active biopharma companies in the digital health space. In the report, we analyse the top 25 players, including AstraZeneca, Roche, GSK, Gilead Sciences, and Novo Nordisk, to provide a comprehensive evaluation of their strategic focus, partnership portfolio, and potential impact on the future of healthcare.

Why are we looking at the role of biopharma players in the digital health space? Digital health has the potential to be transformative in the way that healthcare is delivered and managed, and many biopharma companies stand to benefit from this potential. More biopharma companies are becoming active in digital health, with the top 25 biopharma companies now having a share of partnerships of 45% down from 57% in 2021. With many biopharma companies facing patent expiries and pipeline gaps, digital health represents a potentially promising new path to continued growth.

Galen Growth has recorded more than 9,000 partnerships with digital health ventures in the past five years, of which 9% are with biopharma companies, so pharma makes up a small but important proportion of the partnerships out there. Insurance companies, hospitals and, of course, tech companies, among others make up the remaining 91% of partnerships.

If you’re coming to this from a biopharma background, this report provides an essential snapshot of the current landscape, with a view of which companies are strategically best placed to harness the potential of digital health innovation. There is an increase in the number of pharma players getting into the digital health space and it’s probably not a shock to learn that almost three-quarters of digital health partnerships with pharma include some form of Artificial Intelligence. If you’ve not yet seen the recent report that Galen Growth published on the rise of Generative AI, you can find it here.

There’s plenty of food for thought in this new report, and whether your background is in digital health, biopharma or financing, I definitely recommend taking a look.

Julien de Salaberry

CEO & Founder, Galen Growth

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